Amprius Technologies(AMPX) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported total revenue of $10.6 million for Q4 2024, a 35$24.2 million, representing a 167% increase from $9.1 million in 2023 [20][36] - Product revenue in Q4 2024 was$10.3 million, a 71% sequential increase and nearly 1,000% increase year-over-year from $0.9 million in Q4 2023 [33][34] - Gross margin improved to negative 21$9.5 million, a 55% increase from Q3 2024 and a 62% increase year-over-year [40] Business Line Data and Key Metrics Changes - The company shipped to 98 customers in Q4 2024, with 53 being new to the Amprius platform [17] - The light electrical vehicle market contributed about 25% of Q4 revenue, with expectations for significant growth in this segment [22][116] - The company has a high-performance commercial battery portfolio with 14 different SKUs available [16][19] Market Data and Key Metrics Changes - 77% of Q4 revenue came from outside the United States, compared to 22% in the same period last year [18] - The light electrical vehicle market is projected to reach approximately $136 billion by 2029 [22] - The global drone market is expected to surge from$18 billion in 2023 to $213 billion by 2032 [28] Company Strategy and Development Direction - The company aims to lead in technology innovation and product performance while ensuring world-class manufacturing capability and sufficient production capacity [52] - Amprius plans to expand its customer pipeline and drive revenue growth through additional manufacturing partnerships [54] - The company is actively working on developing a global contract manufacturing network to mitigate geopolitical risks [30][64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, expecting to deliver new high-performance batteries and engage with more customers [54] - The company is monitoring policy challenges and potential industry headwinds due to changes in federal administration [30] - Management highlighted the importance of customer qualification processes and the potential for significant revenue growth from existing customers [124][126] Other Important Information - The company ended 2024 with$55.2 million in net cash and no debt [46] - A total of $16 million in new customer purchase orders was added to the backlog in Q4 2024, providing visibility into growth for 2025 [25][88] Q&A Session Summary Question: Can you talk about the diversity of applications and customization required for customers? - Management noted three types of customers: those replacing existing batteries, those needing qualification, and those requiring certification, with confidence in converting many to purchase orders in 2025 [58][60] Question: Can you discuss your strategy for incremental contract manufacturing? - The company has successfully utilized contract manufacturing without significant capital expenditure and is exploring partnerships in Korea and Europe to diversify manufacturing locations [62][64] Question: Can you provide an update on the balance sheet activity? - The company entered a blackout period as of December 31 and has not been active in the market since then [68] Question: Can you walk us through the strategic decision to target many customers with smaller volumes? - Management emphasized that all customers have high volume potential, and engaging with more customers increases opportunities for success [72][74] Question: What is the expected revenue cadence for 2025? - Management anticipates sequential improvements in revenue throughout 2025, despite some headwinds in Q1 [135] Question: How should we think about gross margin progression for the year? - Management indicated that gross margins are expected to improve as SiCore sales contribute positively from day one [100]